Consumer surplus for a given good can be found by computing the area _____ the _____ curve and _____ the price paid for the good.
A)above;supply;below
B)below;supply;above
C)below;demand;above
D)below;demand;below

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the actual price they pay. This can be found by computing the area below the demand curve and above the price paid for the good. Thus, choice C is the correct answer as it states that consumer surplus can be found by computing the area below the demand curve and above the price paid for the good.

Consumer Surplus for a Given Good Can Be Found by Computing